This report is for informational purposes only. It should be read in conjunction
with documents filed by The Chubb Corporation with the Securities and Exchange
Commission, including the most recent
Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.

Book Value Per Common Share, with
Available-for-Sale Fixed Maturities
at Amortized Cost

$

50.41

$

49.05

Page 1 of 12

THE CHUBB CORPORATION

SHARE REPURCHASE ACTIVITY

(dollars in millions, except per share amounts)

Three Months

From

Ended

December 2005

March 31, 2011

to March 31, 2011

Cost of Shares Repurchased

$387

$8,347

Average Cost Per Share

$58.91

$51.18

Shares Repurchased

6,563,253

163,070,957

In December 2005 and December 2006, the Board of Directors authorized the repurchase of up to
28,000,000 shares and 20,000,000 shares, respectively, of the Corporations common stock. In March
2007, the Board of Directors authorized an increase of 20,000,000 shares to the authorization
approved in December 2006. In December 2007, 2008 and 2009 the Board of Directors authorized the
repurchase of up to 28,000,000 shares, 20,000,000 shares and 25,000,000 shares, respectively, of
the Corporations common stock. In June 2010, the Board of Directors authorized an increase of
14,000,000 shares to the authorization approved in December 2009. No shares remain under these
share repurchase authorizations.

In December 2010, the Board of Directors authorized the repurchase of up to 30,000,000 shares of
the Corporations common stock. The authorization has no expiration date. As of March 31, 2011,
21,929,043 shares remained under the share repurchase authorization.

Page 2 of 12

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

Cost or

Carrying

Amortized Cost

Value (a)

Mar. 31

Dec. 31

Mar. 31

Dec. 31

2011

2010

2011

2010

(in millions)

Short Term Investments

$

975

$

817

$

975

$

817

Taxable Fixed Maturities

1,116

1,154

1,154

1,197

Equity Securities

200

205

170

171

Other Invested Assets

25

23

25

23

TOTAL

$

2,316

$

2,199

$

2,324

$

2,208

PROPERTY AND CASUALTY

Cost or

Carrying

Amortized Cost

Value (a)

Mar. 31

Dec. 31

Mar. 31

Dec. 31

2011

2010

2011

2010

(in millions)

Short Term Investments

$

1,100

$

1,088

$

1,100

$

1,088

Fixed Maturities

Tax Exempt

19,156

19,072

19,806

19,774

Taxable

14,921

14,835

15,514

15,548

Equity Securities

1,105

1,080

1,491

1,379

Other Invested Assets

2,293

2,216

2,293

2,216

TOTAL

$

38,575

$

38,291

$

40,204

$

40,005

(a)

Short term investments are carried at amortized cost, which approximates fair value.
Fixed maturities and equity securities are carried at fair value. Other invested assets
include private equity limited partnerships carried at Chubbs equity in the net assets of the
partnerships.

Page 3 of 12

THE CHUBB CORPORATION

INVESTMENT INCOME AFTER TAXES

Three Months Ended

March 31

2011

2010

(in millions)

CORPORATE INVESTMENT INCOME

$

8

$

8

PROPERTY AND CASUALTY INVESTMENT INCOME

Tax Exempt Interest

$

192

$

189

Taxable Interest

116

121

Other

9

9

Investment Expenses

(7

)

(6

)

TOTAL

$

310

$

313

Effective Tax Rate

18.6

%

19.1

%

After-Tax Annualized Yield

3.20

%

3.27

%

After-tax annualized yield is based on the average invested assets for the periods presented, with
fixed maturities at amortized cost and equity securities at fair value.

STATUTORY POLICYHOLDERS SURPLUS

Mar. 31

Dec. 31

Mar. 31

2011

2010

2010

(in millions)

Estimated Statutory Policyholders Surplus

$

14,600

$

14,539

$

14,780

Rolling Year Statutory Net
Premiums Written

$

11,360

$

11,262

$

11,105

Ratio of Statutory Net Premiums Written
to Policyholders Surplus

0.78:1

0.77:1

0.75:1

Statutory Policyholders Surplus and Net Premiums Written include all domestic and foreign property
and casualty subsidiaries.

Page 4 of 12

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID LOSSES
THREE MONTHS ENDED MARCH 31, 2011

Net Unpaid Losses

All Other

IBNR

Unpaid Losses

Increase

Increase

Increase

3/31/11

12/31/10

(Decrease)

(Decrease)

(Decrease)

(in millions)

Personal Insurance

Automobile

$

402

$

395

$

7

$

(1

)

$

8

Homeowners

740

692

48

37

11

Other

883

877

6

7

(1

)

Total Personal

2,025

1,964

61

43

18

Commercial Insurance

Multiple Peril

1,750

1,705

45

32

13

Casualty

6,244

6,141

103

92

11

Workers Compensation

2,269

2,234

35

44

(9

)

Property and Marine

978

819

159

139

20

Total Commercial

11,241

10,899

342

307

35

Specialty Insurance

Professional Liability

7,439

7,388

51

12

39

Surety

67

58

9

1

8

Total Specialty

7,506

7,446

60

13

47

Total Insurance

20,772

20,309

463

363

100

Reinsurance Assumed

562

592

(30

)

(37

)

7

Total

$

21,334

$

20,901

$

433

$

326

$

107

Page 5 of 12

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(DOLLARS IN MILLIONS)

Personal

Other

Total

Automobile

Homeowners

Personal

Personal

2011

2010

2011

2010

2011

2010

2011

2010

Net Premiums Written

$

162

$

146

$

533

$

517

$

199

$

211

$

894

$

874

Decrease (Increase) in
Unearned Premiums

1

4

68

73

(6

)

(26

)

63

51

Net Premiums Earned

163

150

601

590

193

185

957

925

Net Losses Paid

96

94

309

276

108

99

513

469

Increase (Decrease) in
Outstanding Losses

5

(3

)

44

185

1

5

50

187

Net Losses Incurred

101

91

353

461

109

104

563

656

Expenses Incurred

50

45

192

182

71

66

313

293

Dividends Incurred

















Statutory Underwriting
Income (Loss)

$

12

$

14

$

56

$

(53

)

$

13

$

15

$

81

$

(24

)

Ratios After Dividends
to Policyholders:

Loss

62.0

%

60.7

%

58.8

%

78.1

%

56.5

%

56.2

%

58.8

%

70.9

%

Expense

30.8

30.8

36.0

35.2

35.7

31.3

35.0

33.5

Combined

92.8

%

91.5

%

94.8

%

113.3

%

92.2

%

87.5

%

93.8

%

104.4

%

Premiums Written
as a % of Total

5.7

%

5.3

%

18.6

%

18.7

%

7.0

%

7.6

%

31.3

%

31.6

%

Page 6 of 12

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(DOLLARS IN MILLIONS)

Commercial

Commercial

Commercial

Commercial

Workers

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2011

2010

2011

2010

2011

2010

2011

2010

2011

2010

Net Premiums Written

$

267

$

254

$

436

$

414

$

243

$

222

$

380

$

353

$

1,326

$

1,243

Decrease (Increase) in
Unearned Premiums

15

15

(36

)

(28

)

(46

)

(36

)

(50

)

(42

)

(117

)

(91

)

Net Premiums Earned

282

269

400

386

197

186

330

311

1,209

1,152

Net Losses Paid

150

129

159

175

98

93

153

139

560

536

Increase (Decrease) in
Outstanding Losses

41

67

64

59

31

29

153

34

289

189

Net Losses Incurred

191

196

223

234

129

122

306

173

849

725

Expenses Incurred

102

101

121

115

51

48

123

113

397

377

Dividends Incurred









7

7





7

7

Statutory Underwriting
Income (Loss)

$

(11

)

$

(28

)

$

56

$

37

$

10

$

9

$

(99

)

$

25

$

(44

)

$

43

Ratios After Dividends
to Policyholders:

Loss

67.7

%

72.9

%

55.7

%

60.6

%

67.9

%

68.2

%

92.7

%

55.6

%

70.6

%

63.3

%

Expense

38.2

39.7

27.8

27.8

21.6

22.3

32.4

32.0

30.1

30.5

Combined

105.9

%

112.6

%

83.5

%

88.4

%

89.5

%

90.5

%

125.1

%

87.6

%

100.7

%

93.8

%

Premiums Written
as a % of Total

9.3

%

9.2

%

15.3

%

15.0

%

8.5

%

8.0

%

13.3

%

12.8

%

46.4

%

45.0

%

Page 7 of 12

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(DOLLARS IN MILLIONS)

Professional

Total

Liability

Surety

Specialty

2011

2010

2011

2010

2011

2010

Net Premiums Written

$

551

$

570

$

88

$

76

$

639

$

646

Decrease (Increase) in
Unearned Premiums

53

50

(5

)

5

48

55

Net Premiums Earned

604

620

83

81

687

701

Net Losses Paid

362

387

6

5

368

392

Increase (Decrease) in
Outstanding Losses

(20

)

(29

)

9

(3

)

(11

)

(32

)

Net Losses Incurred

342

358

15

2

357

360

Expenses Incurred

166

162

28

28

194

190

Dividends Incurred





1

1

1

1

Statutory Underwriting
Income (Loss)

$

96

$

100

$

39

$

50

$

135

$

150

Ratios After Dividends
to Policyholders:

Loss

56.6

%

57.8

%

18.3

%

2.5

%

52.0

%

51.4

%

Expense

30.2

28.4

32.2

37.3

30.4

29.5

Combined

86.8

%

86.2

%

50.5

%

39.8

%

82.4

%

80.9

%

Premiums Written
as a % of Total

19.3

%

20.6

%

3.0

%

2.7

%

22.3

%

23.3

%

Page 8 of 12

THE CHUBB CORPORATION  WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(DOLLARS IN MILLIONS)

Total

Reinsurance

Worldwide

Insurance

Assumed

Total

2011

2010

2011

2010

2011

2010

Net Premiums Written

$

2,859

$

2,763

$



$

2

$

2,859

$

2,765

Decrease (Increase) in
Unearned Premiums

(6

)

15

1

2

(5

)

17

Net Premiums Earned

2,853

2,778

1

4

2,854

2,782

Net Losses Paid

1,441

1,397

26

35

1,467

1,432

Increase (Decrease) in
Outstanding Losses

328

344

(30

)

(46

)

298

298

Net Losses Incurred

1,769

1,741

(4

)

(11

)

1,765

1,730

Expenses Incurred

904

860



2

904

862

Dividends Incurred

8

8





8

8

Statutory Underwriting
Income (Loss)

$

172

$

169

$

5

$

13

177

182

Increase in Deferred
Acquisition Costs

25

22

GAAP Underwriting Income

$

202

$

204

Ratios After Dividends
to Policyholders:

Loss

62.2

%

62.9

%

*

%

*

%

62.0

%

62.3

%

Expense

31.7

31.2

*

*

31.7

31.3

Combined

93.9

%

94.1

%

*

%

*

%

93.7

%

93.6

%

Premiums Written
as a % of Total

100.0

%

99.9

%

0.0

%

0.1

%

100.0

%

100.0

%

*

Combined, loss and expense ratios are no longer
presented for Reinsurance Assumed since this business is
in run-off.

Page 9 of 12

THE CHUBB CORPORATION  WORLDWIDE

PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(DOLLARS IN MILLIONS)

Outside

the

Worldwide

United States

United States

Total

2011

2010

2011

2010

2011

2010

Net Premiums Written

$

1,962

$

1,948

$

897

$

817

$

2,859

$

2,765

Decrease (Increase) in
Unearned Premiums

125

148

(130

)

(131

)

(5

)

17

Net Premiums Earned

2,087

2,096

767

686

2,854

2,782

Net Losses Paid

1,145

1,106

322

326

1,467

1,432

Increase (Decrease) in
Outstanding Losses

96

253

202

45

298

298

Net Losses Incurred

1,241

1,359

524

371

1,765

1,730

Expenses Incurred

597

589

307

273

904

862

Dividends Incurred

8

8





8

8

Statutory Underwriting
Income (Loss)

$

241

$

140

$

(64

)

$

42

177

182

Increase in Deferred
Acquisition Costs

25

22

GAAP Underwriting Income

$

202

$

204

Ratios After Dividends
to Policyholders:

Loss

59.7

%

65.1

%

68.3

%

54.1

%

62.0

%

62.3

%

Expense

30.5

30.4

34.2

33.4

31.7

31.3

Combined

90.2

%

95.5

%

102.5

%

87.5

%

93.7

%

93.6

%

Premiums Written
as a % of Total

68.6

%

70.5

%

31.4

%

29.5

%

100.0

%

100.0

%

Page 10 of 12

THE CHUBB CORPORATION

Definitions of Key Terms

Underwriting Income (Loss)

Management evaluates underwriting results separately from investment results. The underwriting operations consist
of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed.
Performance of the business units is measured based on statutory underwriting results. Statutory accounting principles
applicable to property and casualty insurance companies differ in certain respects from generally accepted accounting
principles (GAAP). Under statutory accounting principles, policy acquisition and other underwriting expenses are
recognized immediately, not at the time premiums are earned. Statutory underwriting income (loss) is arrived at by
reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall
performance of the underwriting operations. To convert statutory underwriting results to a GAAP basis, policy acquisition
expenses are deferred and amortized over the period in which the related premiums are earned. Underwriting income (loss)
determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP
underwriting expenses incurred.

Property and Casualty Investment Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its
investment performance because it reflects the impact of any change in the proportion of the investment portfolio
invested in tax exempt securities and is therefore more meaningful for analysis purposes than investment income before
income taxes.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost

Book value per common share represents the portion of consolidated shareholders equity attributable to one share of
common stock outstanding as of the balance sheet date. Consolidated shareholders equity includes, as part of accumulated
other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary
impairment losses, of the Corporations available-for-sale fixed maturities, which are carried at fair value. The
appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due to changes in interest
rates and therefore could distort the analysis of trends. Management believes that book value per common share with
available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the
underlying equity attributable to one share of common stock.

Combined Loss and Expense Ratio or Combined Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability.
Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles
applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations.
It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory
underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to
policyholders.

Page 11 of 12

THE CHUBB CORPORATION

Definitions of Key Terms

Operating Income

Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and
losses. Management uses operating income, among other measures, to evaluate its performance because the realization
of investment gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly,
which could distort the analysis of trends.

Return on Equity and Operating Return on Equity

Return on equity is the ratio of annualized net income divided by average shareholders equity. Average shareholders
equity is the average of the beginning and all quarter-end balances within the period.

Operating return on equity, a non-GAAP measure, is the ratio of annualized operating income divided by average
shareholders equity excluding the after-tax unrealized appreciation or depreciation of investments. Consolidated
shareholders equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation
or depreciation, including unrealized other-than-temporary impairment losses, of the Corporations available-for-sale
fixed maturities and equity securities, which are carried at fair value. The appreciation or depreciation of
available-for-sale fixed maturities and equity securities is subject to fluctuation and could distort the analysis of
trends. Average shareholders equity excluding the after-tax unrealized appreciation or depreciation of investments
is the average of the beginning and all quarter-end balances within the period. Management uses operating
return on equity, among other measures, to assess the overall performance of the Corporation.